Sternlicht to drop bid for Saks Fifth Avenue?

After submitting a bid for the company that owns Saks Fifth Avenue last week, it appears that real estate mogul Barry Sternlicht may withdraw his offer, according to the New York Post.

Sources familiar with the matter have told the Post that Catterton Partners, a buyout firm whose investments have included Restoration Hardware, Breyer’s Yogurt and Build-A-Bear Workshops, had initially approached Sternlicht about making a joint bid for Saks. The plan, as sources understood it, was that Sternlicht would take over the real estate while Catterton operated the stores.

However, Catterton bowed out of the race for unknown reasons, which makes it unlikely that Sternlicht will continue with his bid.

Sternlicht, chairman of the private equity real estate firm Starwood Capital, had been seen as strong candidate in a race among three bidders, the other two being Canadian retailer Hudson’s Bay and an unknown third bidder that some believe may be a Middle Eastern sovereign wealth fund.

The luxury chain could fetch between $17 and $18 a share, although initial bids may have been in the $15 to $16 range. [NYP]– James Comtois